What actually happens during probate?

Cryptoguy

Hi everyone,

My Mother passed away last month. She left a will that had my father as sole executor. Her property was owned outright and will automatically transfer to my father as both were on the deeds but she had £100k from her pension in her savings account that she cashed in during the last 12 months as she had a terminal illness. A couple of questions please.

The bank in which the savings are held have asked for probate therefore we've paid the £300 fee and done the application online.

A couple of questions please.

1) What happens during probate? As in what does the case worker actually do? We've sent the original will and been told it will take 16 weeks. 

2) We received a letter from HMRC asking for details of the executor as they need to establish if my Mother paid the correct amount of tax before she passed away (my Mother wasnt working and the only income she received in the last 12 months was her pension amount she cashed in, her DWP benefit due to terminal illness and her state pension). The letter stated alot of the time it results in a refund of tax paid but is this just a line they put in to encourage you to get in touch?

Thanks in advance.

p00hsticks

I'm sorry for your loss. 

It's a bit late really, but your father probably should have waited to resolve 2) before applying for probate, as the idea is that the executor has established the value of all assets and liabilities before putting in the application. 

Keep_pedalling

When you say she cashed in her pension what sort of pension are we talking about? If it was a SIPP then that may be an error as it would be subject to significant income tax, but a pay out from a defined benefits pension would be treated very differently.

Cryptoguy

I believe it was a defined benefits pension.

Malthusian

Possibly a smart move if your father is unlikely to live long enough to get more than £100,000 out of the widower's pension, although there's not enough information to say for sure.

1) What happens during probate? As in what does the case worker actually do? 

Work on the other cases in the queue.

2) We received a letter from HMRC asking for details of the executor as they need to establish if my Mother paid the correct amount of tax before she passed away (my Mother wasnt working and the only income she received in the last 12 months was her pension amount she cashed in, her DWP benefit due to terminal illness and her state pension). The letter stated alot of the time it results in a refund of tax paid but is this just a line they put in to encourage you to get in touch?

They don't need to encourage you to do anything as the executor is legally obliged to work out the tax bill and pay it to HMRC as a creditor, alongside all the other creditors, before distributing anything to beneficiaries.

Cryptoguy

Does anyone know what probate case officers actually do though? Do they have access to bank accounts, pensions etc or is it just checking the will is valid. Cant really find a breakdown on google.

JGB1955

AIUI they're only interested in verifying that the will is valid.  They don't check that the facts are correct.  HMRC and DWP may well have questions to ask though (but only once probate has been granted).

Marcon

Malthusian said:

Possibly a smart move if your father is unlikely to live long enough to get more than £100,000 out of the widower's pension, although there's not enough information to say for sure.

Yes there is. If the pension is not yet in payment, and if permitted by the rules of the scheme in question, 'serious ill health commutation' is allowed where the member has a life expectancy, confirmed by written medical evidence, of no more than 12 months.

It is only the member's own pension which is commuted (and normally paid out tax free as a lump sum). Survivor pensions are not affected.

shiraz99

Cryptoguy said:

Does anyone know what probate case officers actually do though? Do they have access to bank accounts, pensions etc or is it just checking the will is valid. Cant really find a breakdown on google.

They just validate the will and the information you've given them in the application. They don't access bank accounts etc, the assumption is that what you've told them is correct. If it's not then the executor will be liable later down the line.